2021 QUALIFIED ALLOCATION PLAN - Louisiana Housing Corporation
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2021 QUALIFIED ALLOCATION PLAN
TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................................. 2
Section I ‐ Introduction .......................................................................................................................................... 4
Section II ‐ Available Sources ................................................................................................................................. 4
A. Division of Available LIHTCs..................................................................................................................................4
B. Maximum LIHTCs ..................................................................................................................................................6
C. Basis Boost Determination ...................................................................................................................................6
Section III ‐ Application Process and LHC Fees ....................................................................................................... 6
A. Process for All Applications ..................................................................................................................................6
B. 9% Competitive Application Process ....................................................................................................................7
C. Tax‐ Exempt Bond Financing and 4 Percent Housing Credit ................................................................................9
D. Non‐Refundable Fee Schedule ...........................................................................................................................10
Section IV ‐ Threshold Requirements ................................................................................................................... 12
A. Project Threshold Requirements .......................................................................................................................12
B. Acquisition/ Rehab Project Threshold Requirements ........................................................................................15
C. Project Team/Developer Threshold Requirements ............................................................................................15
D. Underwriting Guidelines ....................................................................................................................................17
Section V ‐ Post Award Processes & Requirements.............................................................................................. 19
A. Post Reservation .................................................................................................................................................19
Carryover/Carry‐Forward Allocation of Tax Credits................................................................................................19
Tenant Selection Plans ............................................................................................................................................20
B. Placed in Service Process and Procedure ...........................................................................................................20
Placed in Service Requirements ..............................................................................................................................20
Fees to CHDO or Non‐profit General Partner..........................................................................................................20
Compliance Training Requirements ........................................................................................................................20
Extended Use Agreement, Compliance Monitoring and Other Requirements .......................................................20
Annual Audits .........................................................................................................................................................20
Construction Monitoring Criteria ............................................................................................................................21
C. Application Revisions ..........................................................................................................................................22
Notification of Material Change .............................................................................................................................22
Notification of Reprocessing Change ......................................................................................................................22
Site Change .............................................................................................................................................................22
D. Compliance Monitoring, Fair Housing, and VAWA.............................................................................................23
Continuing Education..............................................................................................................................................23
VAWA......................................................................................................................................................................23
Management Company Updates ............................................................................................................................24
Glossary............................................................................................................................................................... 25
Appendix A ‐ Selection Criteria ............................................................................................................................ 34
Appendix B ‐ Minimum Design Standards (New Construction & Rehabilitation).................................................. 37
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FINAL APPROVED AS OF 8/12/20Appendix C ‐ Compliance Monitoring Agreement ................................................................................................ 72
Appendix D ‐ Asset Management ........................................................................................................................ 82
Appendix E – Market Studies ............................................................................................................................... 87
Project Evaluation and Market Study Information .................................................................................................87
Content of Market Study ........................................................................................................................................87
Appendix F – Returned/Reallocated LIHTCs ......................................................................................................... 89
Appendix G – Fair Housing Principles and Requirements ..................................................................................... 91
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FINAL APPROVED AS OF 8/12/20Section I ‐ Introduction
The Louisiana Housing Corporation (the Corporation or LHC) administers the Low Income Housing Tax
Credit (LIHTC), including adoption of the 2021 Qualified Allocation Plan (QAP).
The Corporation’s intent is to maximize the production of decent, safe, affordable, energy efficient
residential rental units to be added to the State's housing supply. The Corporation also seeks to prevent
the loss of existing residential rental housing by encouraging the preservation of the current stock of
affordable rental housing units. To ensure that new LIHTC properties remain affordable for the duration
of the extended use period, LHC will require all applicants to waive their right to submit a qualified
contract as a condition of receiving an allocation of tax credits.
The purpose of this QAP is to reserve LIHTCs and other Corporation resources for the creation and
sustainability of affordable rental housing.
In the event of inconsistencies with other program documents, including but not limited to the
Application, the QAP is the controlling document.
The Corporation may amend, modify or withdraw any QAP provision that is inconsistent or in conflict
with state and federal laws and/or regulations.
Section II ‐ Available Sources
A. Division of Available LIHTCs
LHC will reserve the remainder of unallocated LIHTCs to be available to the state to for awarded and
closed projects that experience cost increases due to conditions beyond their control. Stated
reprocessing guideline will apply. If requested funds are not available, taxpayer may be subject to
recapture of existing LIHTC allocation.
There will be one (1) funding round for the 2021 Credit Ceiling. LHC will award applications with the
highest score from each Pool below using the Selection Criteria in Appendix A until insufficient LIHTCs
are available to award the next highest ranked application.
1. Qualified Non‐Profit/CHDO Set-Aside: At least ten percent (10%) of the state’s LIHTC ceiling will go
to projects involving material participation by tax exempt organizations (Non-Profits). LHC will make
awards to eligible applications using the Pool Selection Criteria, alternating between the New
Construction and Rehabilitation Pools, until reaching this percentage. Any remaining Non-Profit
applications will compete in its respective Pool.
If necessary, LHC will adjust the awards to ensure that the overall allocation results in fifteen
percent (15%) of LHC’s HOME funds being awarded to projects involving Community Housing
Development Organizations (CHDOs).
Applications for the Qualified Non‐Profit Pool/CHDO Pool must include the following
documentation:
• IRS 501(c)(3) or 501(c)(4) Determination Letter of non‐profit organization;
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FINAL APPROVED AS OF 8/12/20• Articles of Incorporation and Bylaws of non‐profit organization;
• CHDO approval letter from participation jurisdiction if applying as a CHDO, and evidence that
one of more employees of the CHDO has demonstrated development experience;
• Non‐profit Participation Information as required by the Application;
• Development Services Agreement evidencing that Qualified Non‐Profit or CHDO will receive at
least fifty‐one percent (51%) of the Developer Fee; and
• A resolution from the Non‐Profit or CHDO’s Board of Directors that includes language
authorizing the application for LIHTC under the 2021 QAP, developing and owning the resulting
housing, and the partnership with another entity (if applicable).
2. Rehabilitation Pool: Applications proposing only the acquisition and rehabilitation of existing
housing.
3. New Construction Pool: All other applications, including adaptive reuse.
4. Metropolitan and Rural: LHC will award approximately half of each Pool to the following Parishes
and half to the other 56: Caddo; Calcasieu; East Baton Rouge; Jefferson; Lafayette; Orleans;
Ouachita; St. Tammany.
5. Remainder: LIHTCs not awarded due to inadequate requests among eligible applications will shift to
Metropolitan or Rural within their respective Rehab or New Construction Pool. All remaining tax
credit balance will collapse into a statewide pool or carry forward to the next competitive cycle. LHC
will reserve the remainder of unallocated LIHTC's to be available to closed projects that experience
cost increases due to conditions beyond their control. Stated reprocessing guidelines will apply. If
requested funds are not available, taxpayer may be subject to recapture of existing LIHTC allocation.
Any remaining unallocated credits will be rolled over into the next year’s QAP.
ALLOCATION POOLS PERCENT AWARDED
Nonprofit/CHDO 10%, as taken from Rehab and New
Rehabilitation 25% Metro Area Rehab Sub-Pool
50% of remaining pool 25% Rural Parishes Rehab Sub-Pool
New Construction 25% Metro Area NC Sub-Pool
50% of remaining pool 25% Rural Parishes NC Sub-Pool
Note:
Application submissions whose project units evidence a combination of both Rehab and New Construction,
will only be placed in the New Construction General Pool if the percentage of New Construction units
exceeds 50 percent of the project’s total number of units.
NOTE to Allocation process – Credits and Applications remaining in the sub-pools will be consolidated in its
designated upper tier pool and awarded to the highest ranking application(s) therein. Additionally, any
residual credits and applications from the New Construction and Acquisition/Rehab Pools will be placed in a
statewide collapse pool and awarded in rank order until there is an insufficient amount of credits to fund the
next highest ranking application.
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FINAL APPROVED AS OF 8/12/20B. Maximum LIHTCs
1. LIHTC Per Project Cap: The maximum competitive LIHTC that any single project may receive is
$750,000 for rural parishes and $1,000,000 for the 8 metropolitan parishes.
2. LIHTC Per Developer Cap: No Developer, including related persons thereof or agents thereof or any
person having an identity of interest with any such Developer, related persons thereof or agents
thereof or any combination of the foregoing shall be reserved competitive LIHTCs in excess of
$1,500,000 for rural parishes and $2,000,000 for metro parishes.
A Developer that has never been issued a Form 8609 is eligible to receive only one (1) award.
C. Basis Boost Determination
Projects with competitive LIHTCs may qualify for a 15% basis boost if located in Qualified Census Tracts
(QCTs); or 30% if located in either a Difficult Development Area (DDA) or a Census tract where the AMI
meets or exceeds 80% for the area as determined by the Federal Financial Institutions Examination
Council (FFIEC).
Projects financed with tax exempt bonds located in a QCT or DDA will be eligible for up to a 30% basis
boost.
Section III ‐ Application Process and LHC Fees
A. Process for All Applications
Application and Analysis fees must be computed in accordance with the Non‐Refundable Fee Schedule
specified within this section. Fees may be paid by cashier’s check, electronic wire transfer, or money
order only.
Cashier’s checks and money orders should identify the project for which they are being submitted and, if
mailed to the LHC, should be addressed as follows:
Louisiana Housing Corporation
Attn: Rental Production ‐ Competitive Round
2415 Quail Drive
Baton Rouge, LA70808
For Information regarding Electronic Wire Transfers please contact staff @ qapcomments@lhc.la.gov .
The wire date and confirmation/reference number should be e‐mailed to qapcomments@lhc.la.gov .
All LIHTC applications must use the established Electronic Underwriting Application process. By
submitting an application, applicants agree to conduct transactions with the LHC by electronic means
and for LHC to transfer the electronic application to its service providers.
If you require special services or accommodations, please submit your request via e‐mail to
qapcomments@lhc.la.gov with “Accommodation Request” in the subject line.
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FINAL APPROVED AS OF 8/12/20LHC will disqualify Applications if:
• the sender or its informational processing system inhibits the ability of LHC to print or store the
electronic application;
• the underwriting application is not submitted in Excel format, is incomplete, or has been
unlocked/copied/tampered with;
• the application is not in a form capable of being processed by LHC’s system;
• an applicant does not create a unique ID and password or provide a valid email address.
The Applicant must include evidence that a Public Notice was published in a local newspaper having
general circulation in the city, town, township or municipality of the proposed development area AND in
the official journal of the local governing authority three (3) separate times within six (6) weeks of final
application submission. Proof must be also submitted in the application, including delivery receipt, that
the applicant has submitted correspondence regarding the application to the Mayor and the Chair or
President of the local governing authority where the project is located.
NOTE: (for projects utilizing Tax Exempt Bond Financing, proof of public must evidence
the ads ran within 60 days prior to application submission)
A list of acceptable local newspapers and official journals of local governing authorities is posted
on the Corporation’s website. If any applicant proposes to submit an application in an area not
listed or covered, a written request for additional information must be submitted by no later
than August 19, 2020 at 4:00 p.m. CDT to qapcomments@lhc.la.gov .This notice must include:
• The name of the project owner;
• The project name;
• The project address or location;
• The maximum number of units;
• The mix of units;
• The nature of the project (i.e. new construction or rehabilitation, elderly or family,
etc., and construction type and occupancy type, along with proposed community
facility and supportive services;
• State the project is competing for 9% Tax Credits (or applying the 4% Tax Credits)
provided by Louisiana Housing Corporation; and
• Total development cost including funding sources and amounts.
LHC may request and retain all original documents submitted electronically in the application. An
applicant’s failure to provide original documents within 72‐hours after receiving the Corporation’s
written request will result in an automatic disqualification. Materials contained in LIHTC applications are
subject to the requirements of the Louisiana Public Records Request law (La R.S. 44:1 et seq.).
B. 9% Competitive Application Process
1. Initial Submission Requirements: The following must be submitted on or before Monday,
September 21, 2020 by 4:00 p.m. CDT:
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FINAL APPROVED AS OF 8/12/20• Underwriting application
• Application and Market Study Fees
• Evidentiary materials to support the appendixes in the underwriting application, the Threshold
Requirements and all financial commitments
• evidentiary materials to support the Selection Criteria items
2. Final Submission Requirements: The following must be submitted on or before Monday, November
2, 2020 by 4:00 p.m. CDT:
• Threshold clarification, if applicable, any additional material LHC requested.
• Analysis Fees (upon request)
Applications not received on or before the specified deadline(s) or submitted by means other than the
established Electronic Underwriting Application process (including via email) shall be disqualified.
QAP 2021 Program Schedule
Date Applicant LHC
Presentation of Draft QAP to Board of
June 10, 2020
Directors
Statewide Publication of Draft
June 12, 2020
QAP/Public Hearing Notice
June 12-June 19, 2020 Written Comments accepted
June 26, 2020 QAP Public Hearing
Adoption of Final QAP and Submission to
August 12, 2020
the Governor for Signature
Deadline for submission of written
August 19, 2020
QAP questions
QAP Workshop/Application Process and
August 27, 2020
Posting of FAQs
Submission of Underwriting
Application, Financial Commitments,
Evidentiary Materials to support the
September 21, 2020
Appendixes and Financial
Commitments, Selection Criteria and
Market Study Fees Due
Threshold Clarification and Analysis
November 2, 2020
Fees Due
Score Reconciliations Provided to
November 18, 2020
Developers
Deadline to Submit Written Request
November 20, 2020
for Appeal of Reconciled Score
Approval of Final Rank, Scoring and
December 9, 2020
Reservation of LIHTCs
3. Evaluation of Competitive Applications: Aggregate rankings or scoring under Appendix A will in no
way guarantee an award of LIHTCs to a particular project. During the application review process and
throughout the allocation process, LHC will utilize its sound and reasonable judgment and will exercise
its discretion consistent with sensible and fair business practices. LHC reserves the right not to reserve
LIHTCs to any Applicant for a Project, regardless of the Project’s score.
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FINAL APPROVED AS OF 8/12/20a. Notice to Applicant: LHC will not provide information as to the Application’s processing status.
b. Joint Review: LHC may conduct joint reviews with or obtain information from other funding
sources.
c. Ownership of Applications: LHC shall become the owner of the Application.
d. Communication with Contact Person: LHC staff will communicate only with the contact person
listed in the Application. LHC will disregard information received from others unless submitted
in response to a staff request.
e. Corporation’s Request for Supplemental Data and /or Clarification: LHC may request
supplemental data.
f. Score Reconcillation: LHC will provide each developer a reconciliation of their scores by no later
than 4:00 p.m. CDT on Wednesday, November 18, 2020.
g. Appeals: Upon receipt of the reconciliation of the score, the developer may request an appeal in
writing, no later than forty-eight (48) hours after receipt of the score reconciliation. LHC will
present appeals to a review panel. The panel will review staff scoring decisions, not feasibility
issues. LHC may reject any appeal requests for applications not reasonably positioned to receive
an award.
h. Tie‐breaking Procedures: In the event of a tie between applications for which there are
insufficient LIHTCs to award each, LHC will use the following tie‐breaking procedure:
I. Selection Criteria IA(i): percentage of low-income units.
II. Selection Criteria IA(ii): being located in a census tract with high area median incomes.
III. Requesting the lowest amount of LIHTCs.
IV. Earliest application submittal.
i. Reservations Pursuant to Qualified Allocation Plan and Federal Regulations: The Corporation
may make, revise, rescind or withdraw any reservations or allocations.
j. Waiting List: LHC will place all unfunded applications meeting minimum threshold in statewide
rank order on the approved waiting list. The 2021 waiting list shall remain active until either the
next funding cycle, until the next QAP is approved, or until such time as the LHC Board of
Directors takes any other action concerning the effectiveness of the waiting list.
k. Prohibited Contact: LHC will disqualify individuals, entities, developers and their staff and/or
agents and representatives for making any contact with LHC staff or Board members regarding
the competitive funding round between the initial submission deadline and the end of the
appeal period. Any questions concerning the QAP and/or its policies, processes must be
submitted via e‐mail to qapcomments@lhc.la.gov.
C. Tax‐ Exempt Bond Financing and 4 Percent Housing Credit
Applicants requesting to finance projects with tax‐exempt bonds must complete a separate application
any time during the calendar year. Applications for bond financed projects must be submitted to the
Corporation at least sixty (60) days in advance of the meeting at which such project will be subject to
approval by the Corporation's Board of Directors
The limitation of LIHTCs per project and per Developer as well as the Total Development Cost (TDC)
limits shall not apply if a public hearing is held in a local forum proximate to where the project is located.
The public hearing must follow a Notice of Public Hearing published at least fourteen (14) days prior to
the hearing in a newspaper of general circulation within the parish where the project is located. Such
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FINAL APPROVED AS OF 8/12/20Public Notice must specify the number and percentage of low‐income units if the project contains fifty
(50) or more units or, if not specified in the Public Notice, the governing authority of the jurisdiction in
which the Project is located must approve the number and percentage of low‐income units.
LHC may require a legal opinion stating that the development is eligible to receive a LIHTC allocation.
LHC has the final determination concerning eligibility of a project for a LIHTC award and may reject an
application for failing to meet threshold requirements. LHC will award 4% LIHTCs only if it approves and
closes the tax exempt bonds. LHC may waive this requirement.
A representative of the developer or Management Company must meet with the LHC-specified staff
within six months following issuance of the 42(m) letter.
D. Non‐Refundable Fee Schedule
The following non‐refundable fees govern the application processing, reprocessing and reservation of
LIHTC and the fees to monitor and report compliance. The following non‐refundable fees must be paid
either with a wire transfer, money order or certified check. LHC will return any other form of payment
and disqualify the application.
Application Fee Analysis Fee
1 to 4 units $100 1 to 4 units $100
5 to 32 units $1,000 5 to 32 units $1,000
33 to 60 units $1,500 33 to 60 units $1,500
61 to 100 units $2,500 61 to 100 units $2,500
Over 100 units $5,000 Over 100 units $5,000
Reprocessing Fee
The reprocessing fee is due Market Study Fee
upon submitting
reprocessing change $4,500
1 to 4 units $50
5 to 32 units $500
33 to 60 units $750
61 to 100 units $1,250
Over 100 units $2,500
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FINAL APPROVED AS OF 8/12/20Return/ Reallocated
5% of Reallocated Credits
Credit Award
(due upon executing the
Reservation
5% of Credit Reserved
Subsidy Layering/Placed In Service
Annual Compliance/Monitoring Fee
Review Fees LHC may charge such additional amounts at
If HUD or RD Housing Assistance or other
any time as may be required to monitor
government assistance is provided to a
compliance.
Project, a Subsidy Laying Review is required
in addition to the Placed In Service Review. Project Size Fee
Subsidy Layering Review ¼ Analysis Fee
Per unit (including market rate) $40
Placed In Service Review $250
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FINAL APPROVED AS OF 8/12/20Section IV ‐ Threshold Requirements
Applications which fail to meet threshold requirements are ineligible. Unless otherwise noted, projects
with tax‐exempt bond financing must also meet all threshold requirements.
A. Project Threshold Requirements
1. Site Control: Site control is required at time of application and may be documented by a purchase
agreement, an option to purchase, extended term lease, or a valid title in the name of the taxpayer
or developer. The application submission must identify the site locations.
2. Zoning: Appropriate zoning is required at the time of application and must be evidenced in the form
of either
a. an official local jurisdiction map that the site is zoned for the proposed project type or
b. a letter from an official of the jurisdiction stating either that (i) the proposed project is
consistent with existing zone requirements or (ii) changing the existing zoning requirements to
permit the project will be completed no later than the date for LIHTC reservations.
3. Infrastructure: Evidence of the following:
a. Utilities: electrical, water and sewer lines available to the property site.
b. Transportation: Evidence that reasonable transportation services are currently proximate to the
site, or if such transportation services are not, a narrative statement of how tenants will access
commercial, educational, recreational and other services upon completion of project.
c. Educational Facilities: (i) primary educational facilities are reasonably available to school‐age
children of tenants if the project is for family units, and (ii) notification to the local public school
system about the estimated prospective population count of school age children when the
project is placed in service.
4. Environmental Review: All projects involving use of existing structures must submit an
Environmental Restrictions Checklist completed by a professional licensed to conduct environmental
testing. The owner must mitigate or abate any finding of environmental hazards accordance with an
Operating and Maintenance Plan, including training on‐site personnel. Costs associated with
environmental hazard mitigation or abatement must be included in the project’s budget.
5. Negative Neighborhood Features: New Construction Projects must not be within ½ mile radius of
any of the following incompatible uses listed with the exceptions of Towns or Cities with a
population of 15,000 or less. The following incompatible uses cannot be adjacent to any new
construction projects in the following parishes: East Baton Rouge, Jefferson, Orleans, St. Tammany,
Caddo, Lafayette, Calcasieu and, Ouachita.
Junk yard/dump Pig/Chicken farm
Processing plants Distribution facilities
High Voltage Substations Airports
Solid waste disposal Salvage Yard
Heavy Industrial Prisons
6. Tenant Referrals from LHA/OCD, PHAs: Owners must market to and rent to low income households
referred by the LHA/OCD, and/or the local PHA if the tenants satisfy the requirements of the
Project’s Management and/or Operating Plan.
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FINAL APPROVED AS OF 8/12/207. Minimum Internet/Cable Capacity Requirements: All units must be equipped with networks to
provide cable television, telephone and internet access in the living area and each bedroom.
Tenants must be able to access and activate the following networks (combined or distinct):
• telephone network installed for phones using CAT5e or better wiring,
• network for data installed using CAT5e or better, networked from the unit back to a central
location or similar configured wireless network and (iii) television services network using COAX
cable.
The wiring for such networks should be available to tenants free of charge. Owners may charge
tenants its actual fee incurred for activating and making available any services provided directly by
the Project or through third party providers. The equivalent of wireless network access is
acceptable.
8. Washers and Dryers: All new construction projects must include washers and dryers.
9. Energy Efficiency: Projects are required to meet these minimum requirements:
• HVAC
o Energy Star qualified furnace (80% AFUE) or heat pump (HSPF 8.2)
o o Energy Star qualified air‐conditioner (SEER 14.5)
o Size calculations for all HVAC equipment must be based on Manual J/S
• Windows
o U‐value of 0.4 or less o SHGC of 0.30 or less
o Ten‐year warranty from date of delivery against breakage of the glazing panel’s seal
• Appliances
o Energy Star refrigerator
o Energy Star dishwasher
o Energy Star washer
o Water heater: Gas (Energy Factor of 0.80 or higher) or
Electric (Energy Factor of 0.92 or higher)
• Insulation
o Ceiling‐ R38
o Walls‐ R13
o Floors‐ R19
All of the energy efficiency components must be clearly and individually listed in an original stamped
letter from either the architect or engineer of record. The letter must state that the entire construction
envelope meets or exceeds the 2015 Revised International Energy Conservation Code.
All federally and Non‐federally funded rehabilitation projects are not required to adhere to the
minimum energy efficiency requirements unless:
(i) The Capital Needs Assessment requires replacement of the item;
(ii) The Applicant chooses to replace an item; or
(iii) The Corporation, in consultation with the Corporation’s contracted underwriter, determines that
an early replacement of an item with a more energy efficient system substantially improves the
quality of life for residents with substantial benefits attributable to reduce deposits to reserves
for replacement and/or reductions in operating expenses.
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FINAL APPROVED AS OF 8/12/2010. Design Features: All projects must meet the following design features:
i. All projects must have a 15 year or more maintenance‐free exterior, such as brick, stucco, fiber‐
cementitious material or other Corporation‐approved acceptable durable materials. The use of
other durable materials is subject to review by the Corporation’s Construction Department or a
designated architect. Vinyl siding is not an acceptable material
ii. All projects must have at least a 25 year roof warranty
iii. All projects must have at least double paned, insulated windows.
(iv) Universal Design- New Construction Only
(v) Must meet minimum standards for Green Building Certification via one of the following criteria:
Leed Criteria, Green Communities Criteria, National Green Building Standard ICC 700 Criteria,
or EarthCraft Criteria.- New Construction Only
11. Flood Requirements: All projects located in the Special Flood Hazard Area (SFHA) must meet the
National Flood Insurance Program (NFIP) criteria in 44 CFR 60.3, elevating at a minimum to the Base
Flood Elevation indicated in the applicable Flood Insurance Rate Map (FIRM) and/or Flood Insurance
Study (FIS). Projects must also meet all local standards for floodplain management. Applicants must
provide a finished construction Elevation Certificate and, if located inside a levee protected area, an
Architect’s certification.
12. Rehabilitation Projects: Rehabilitation projects must submit a capital needs assessment which
specifically addresses the current Federal Emergency Management Agency (FEMA) and NFIP
Guidelines. Rehabilitation of a historic property in a local historic, state cultural, or National Register
Historic District must be rehabilitated in accordance with the Secretary of the Interior’s Standards
for Historic Rehabilitation.
13. Historic Rehabilitation Projects: Applications for historic rehabilitation projects must include
evidence of an approved Part I from the Louisiana Office of Cultural Development Division of
Historic Preservation (Part II will be due at carryover) and any information concerning waivers from
minimum project requirements. If a historic structure undergoing substantial improvement (per the
NFIP definition) is not being elevated, the application must document that the historic designation
will be maintained after completion.
14. Projects with Federal Funds or Insurance: LHC will reserve LIHTCs to projects receiving federal funds
or insurance under a federal program only after the federal agency advises the LHC in writing that it
has no objections.
15. Legal Description of Project Property Site: Applications must include a legal description and map
including parish, municipality, subdivision, tracts, section, ranges, boundaries, directions and
measurements.
a. A Scattered Site Project located in an urban area may identify the street addresses for each
separate site in lieu of providing a legal description.
b. The legal description and/or street addresses of the Project Site included with the Application
must be consistent with all subsequent documents submitted.
c. Additional Sites: No additional sites may be included without LHC approval.
16. Minimum Score: All projects, including those using tax-exempt bonds, must meet a minimum
selection criteria score of forty (40) points.
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FINAL APPROVED AS OF 8/12/20B. Acquisition/ Rehab Project Threshold Requirements
1. Audited Financials of Project from Seller: Applications must include the project’s latest audit and
financials prior to transfer by the seller. LHC may accept alternate documentation such as tax
returns and compiled financials.
2. Sales Price with Related Persons in Seller and Purchaser: LHC will not recognize a sale price in
excess of the appraised value. For purposes of the gap analysis, LHC will reduce the sales price in an
amount equal to the difference between the appraised value and the sum of the sales price and any
seller retained reserves.
3. Ten Year Title History: Applications must include a ten year title history of all property and a
summary of the parties owning and purchasing the property (including price paid) within the ten
year period.
4. Amenities: Properties must include either on‐site laundry (one washer and one dryer per every
10 units) or washers and dryers installed and maintained in every unit at no additional cost to
tenants. All amenities, with the exception of the on‐site laundry, must be available to the tenants at
no additional charge. The requirement of an onsite laundry does not apply to SRO projects or those
with twelve (12) or fewer units.
5. Capital Needs Assessment: Applications must include a capital needs assessment (CNA) by an
architect or engineer, dated no earlier than six months before the deadline.
a. The person conducting the CNA must have a background in evaluating accessibility under the
Fair Housing Act, Section 504 of the Rehabilitation Act, and the Americans with Disabilities Act.
The reviewer must identify the appropriate technical accessibility standard for each law and
apply that standard to the design plans and construction.
b. The CNA must:
• identify the age and condition of the building or project and related major systems
(including climate control equipment, plumbing and fixtures, cooking and other kitchen
equipment, roofs, exterior siding and electrical systems),
• specify the required repair and/or rehabilitation of the buildings and systems (including the
estimated costs of each) over at least twenty years following the Placed in Service Date,
• estimate the useful remaining life of the project and related major systems following their
repair,
• specify the minimum amount which must be deposited to the repair and replacement
reserve over twenty years to maintain property quality and habitability standards, and
• either identify the presence of environmental hazards, such as asbestos, lead paint and
mold on the property or contain an Exhibit A Phase I Environmental.
Should the CNA identify the presence of hazardous material, the application also must include a
hazard mitigation plan and show the costs of mitigation in the project’s budget.
6. Appraisal: Applications must include an appraisal establishing the fair market value of any existing
property exceeding $500,000 or if the Acquisition Costs of buildings are included in Eligible Basis.
Appraisals cannot be dated prior to ninety days of the application submission.
C. Project Team/Developer Threshold Requirements
1. Developer Experience
The Managing Member or General Partner or must:
a. be identified in the application;
b. have received Forms 8609 for a project in any state of comparable size and financing complexity
within the last five (5) years;
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FINAL APPROVED AS OF 8/12/20c. become a general partner or managing member of the ownership entity; and
d. remain responsible for operation of the project for a period of two (2) years after placed in
service.
e. New Developer. A Developer that has never been allocated tax credits is only eligible to receive
an award of tax credits for one (1) project submitted under the 2019 QAP. A new developer shall
complete at least one (1) LIHTC Project in which all LIHTC units have been leased and has
received an IRS Form 8609, in Louisiana or any other state, before being allowed to submit a
subsequent application.
LHC may request a personal credit report or Authorization for Release of Information Form.
No developer or taxpayer utilizing a debarred participant in the development or operation of a
project may be reserved or allocated tax credits.
2. Property Management Experience
a. The property management company must have at least:
• one (1) similar (size and type) LIHTC project in their current or past portfolio;
• three (3) years of experience successfully managing a LIHTC Property;
• one (1) staff person serving in a supervisory capacity with regard to the Project who has
been certified as a LIHTC compliance specialist within twelve (12) months of the application
deadline from an organization approved by LHC; and
• one (1) staff person with record of Fair Housing training.
LHC may request the audited financials of the management company.
b. None of the persons or entities serving as the property management company may have in their
portfolio a project with material or uncorrected issues of non‐compliance beyond the applicable
cure period.
c. LHC approval is required to change a management company within two (2) years of project
completion.
The development must be managed by an on‐site manager that has received LIHTC Compliance
Certification dated no more than twelve (12) months prior to the application deadline from a program
deemed acceptable to the Corporation in accordance with industry recognized training standards.
3. Project Team Disqualifications
LHC will disqualify any member of the project team who is not in good standing or has met one or
more of the following criteria:
a. Within the past ten (10) years, has been debarred or received a limited denial of participation by
any federal or state organization from participating in any development program and/or has
outstanding flags in HUD’s national 2530 National Participation system;
b. Within the past ten (10) years, has been in a bankruptcy;
c. Within the past ten (10) years, has had an adverse fair housing settlement, an adverse civil rights
settlement, or an adverse federal or state government proceeding and settlement;
d. Within the past ten (10) years, has been involved in a project which previously received an LIHTC
allocation but failed to meet standards or requirements or failed to fulfill one of the
representations without the express LHC approval;
e. Within the past five (5) years, has been found to be directly or indirectly responsible for any
other project in which there is or was an uncorrected issue of non‐compliance that remained
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FINAL APPROVED AS OF 8/12/20uncorrected for more than three (3) months from the date of notification unless determines
that the uncorrected non‐compliance was not the fault of the person in question;
f. Is delinquent or in default on any LHC obligation, including but not limited to, HOME repayment,
as of the application date;
g. Has an outstanding audit report requirement or unresolved audit deficiencies as of the
application date;
h. Has unresolved outstanding 8823s or other outstanding compliance violations as of application
date; or
i. Is currently out of compliance with project schedules on existing LHC-funded projects by greater
than ninety (90) days as of application date.
LHC may decide to not fund any application for lack of capacity.
D. Underwriting Guidelines
1. All applications must submit a fifteen (15) year pro forma cash flows complying with the following
requirements: Rate of Increase: two percent (2%) for revenues and expenses must be the greater of
Operating Costs Adjustment Factors (OCAF) or three percent (3%).
2. Required Debt Service Ratios: Debt service ratios may not fall below 1.15 (1.10 for Rural
Development and HUD funded properties) unless the Owner executes an appropriate escrow or
acceptable guarantee in an amount equal to the maximum cumulative cash flow shortfall. The
maximum debt service ratio is 1.4.
3. Maximum Return on Capital for Projects with Soft Funds and Distributions of Surplus Cash: Any
project which receives LHC Soft Funds and which evidences satisfaction of the Minimum Reserve
Balance will be permitted a Capital Recovery Payment on Taxpayer Capital equal to 350 basis points
above the comparable Treasury bill yields as of the Closing Date that are coterminous with the
return of taxpayer capital over a maximum ten (10) year period. LIHTC equity does not count as
Taxpayer Capital. Surplus Cash evidenced in annual audits may be distributed each fiscal year so
long as such distributions are limited to not exceeding fifty percent (50%) of such Surplus Cash.
4. Terms Required for Cash Flow Notes: Any cash flow note associated with the acquisition of an
existing project must be accompanied by a schedule establishing the imputed principal of the cash
flow note under IRC Section 1274(b) and any basis adjustment of the note and project pursuant to
Section 1.1275‐4(c) of the Treasury Regulations. All cash flow notes must mature on or before the
end of the economic life of the project which may not exceed 55 years. Developer Fee Cash Flow
Notes must mature by the end of the initial Compliance Period of 15 years.
5. Vacancy Rate Assumptions: the greater of seven percent (7%) or as determined by the
commissioned market analyst.
6. Required Deposit to Reserves for Replacement: Minimum replacement reserves should equal $250
per unit per year for new construction developments for seniors, and $400/unit/year for new
construction developments for families. For rehabilitation, the minimum is the lesser of
$400/unit/year or as specified in Capital Needs Assessment. Notwithstanding the foregoing, the
annual amount may be determined in accordance by HUD or RD if either is providing financing.
7. Maximum Rents: Pro forma rents for application purposes may not exceed the lowest of market
rents evidenced in the market study, HUD's most recently published fair market rents (FMR), or the
maximum rent permitted by Section 42 or any subsidy program which benefits the project.
8. 30% AMI and Target Population:
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FINAL APPROVED AS OF 8/12/20a. Projects must set‐aside at least 5% of units for households with incomes at or below 30% AMI
and agree to give preference to Veterans, Disabled and Elderly persons on the PHA waiting list if
they satisfy the requirements of the Project’s Management and/or Operating Plan.
b. At least 80% of the units under the mandatory 5% set aside will be the Permanent Supportive
Housing Program to house the “Target Population” in the DOJ Agreement (DOJ units) in projects
which LHC has determined:
i. are in areas where sustainable supportive services are provided;
ii. make the units affordable to the Target Population;
iii. are in areas identified as having a need for PSH units; and
iv. contain sufficient accessible units and one‐ and two‐bedroom units.
The DOJ units will be set aside for households at or below 20% AMI (unless LHC allows a higher
percentage). LHC may waive the 40% minimum requirement when there are not a sufficient
number of members of the Targeted Population available for the project to meet the
requirement.
9. Minimum Operating and Maintenance Expenses: Minimum operating and maintenance expenses
shall be the greater of $3,600 per unit per year or an amount based on similarly‐situated projects in
LHC's portfolio. For rehabilitation applications, LHC may increase the minimum based on review of
the prior three (3) years of audits of the project’s operations.
10. Minimum Reserve Balance: Minimum operating reserves should equal six (6) months of projected
operating expenses.
11. Rent Subsidies: Rent subsidies should be referenced in the pro forma.
12. Developer Certification of Sources and Uses: Developer must provide a certification of project
sources and uses, including related party fees and purchase price of sites, at each point of LHC
evaluation.
13. Developer Fees: The maximum Developer Fee is the amount determined below, $1,500,000.00 for
projects located in Rural parishes; $2,000,000 for projected located and the Metro parishes and no
cap for projects utilizing tax-exempt bonds.
For Rehabilitation projects the Developer Fee will not exceed thirty percent (35%) of the
rehabilitation hard cost line-item.
a. For New Construction Projects the Developer Fee will not exceed $35,000 per LIHTC unit.
b. Applications must include a Development Services Agreement.
c. LHC will not allow increases to the developer fee as submitted in an application.
14. Architect Fees: Maximum of seven percent (7%) of construction contract.
15. Builder Profit: Maximum of six percent (6%) of the builder profit fee base. Costs to lease equipment
owned by the Developer, Builder, or any parties with an identity of interest will count as builder
profit and overhead, excluding costs of fuel, lubrication, or other normal expenditures for such
equipment.
16. Builder Overhead: Maximum of two percent (2%) of the builder profit fee base.
17. Profit and Overhead Limitation: LHC will not allow overhead and builder profit when
a. more than fifty percent (50%) of the contract sum in the construction contract is subcontracted
to one subcontractor, material supplier or equipment lesser, or
b. seventy‐five percent (75%) or more with three or fewer subcontractors, material suppliers or
equipment lessors.
18. General Requirements: Maximum of six percent (6%) of the general requirements base; excludes
bond premium paid by the Developer or the Taxpayer/Owner.
19. Syndication Costs: Maximum of ten percent (10%) and fifteen percent (15%) of Gross Equity for
privately placed and publicly offered syndications, respectively, will be treated as part of the
Developer Fee.
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FINAL APPROVED AS OF 8/12/2020. Maximum Unit Development Cost. The maximum unit development cost is based on the building
design type (elevator, walk up, row house, detached/semi‐detached), number of bedrooms, and
geographic location of the proposed property. Projects must use the applicable cost limits for
properties located in the MSAs listed in the HUD 2019 Unit Total Development Cost Limits document
(see HUD PIH Office of Capital Improvements website:
https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2019_Final.pdf
LHC may approve increases up to 20% above the per unit maximum based on:
• The nature of the cost increase and the necessity to the production of affordable housing.
• Whether the increased costs are required because of a local municipality requirement and/or
commitment of local funding to offset costs.
Requests must acknowledge that application will be ineligible if LHC does not approve the increase.
a. Extraordinary Site Costs. Examples include, but are not limited to: abatement of extraordinary
environmental site hazards; removal or replacement of extensive underground utility systems;
extensive rock and/or soil removal and replacement; removal of hazardous underground tanks;
work to address unusual site conditions such as slopes, terraces, water catchments, lakes, etc.;
and work to address flood plain and other environmental remediation issues. Costs to abate
asbestos and lead‐based paint should be included in normal demolition costs where such items
are found within the structures themselves. An example of extraordinary lead‐based paint
would be where the lead has leached into the soil and require extraordinary measures to
remove, staff as recommended by the project’s Architect/Engineer. Cost standards will be based
on industry standard cost indexes.
b. Exclusion Community Facilities and Community Services Facilities. The costs associated with
community facilities and community service facilities will be excluded for establishing the
project cost.
c. Single Room Occupancy (SRO) Projects will not be subject to project cost limits if the local
governmental unit by resolution or ordinance endorses the SRO Project and certifies it will
provide shelter to homeless persons or will receive Stewart‐McKinney Act Funds.
d. Projects Reallocated Credits Based on Housing Discrimination. Notwithstanding any other
previous LHC requirement or policy to the contrary, additional costs to projects which are
delayed based on housing discrimination and reallocated LIHTCs will not be subject to cost limits
if the project is otherwise feasible and the increased costs were due to circumstances beyond
the developer’s control.
Section V ‐ Post Award Processes & Requirements
A. Post Reservation
Carryover/Carry‐Forward Allocation of Tax Credits
Carryover allocation documentation will be due on or before December 17, 2020 Owners will have until
June 29, 2021 to provide the necessary documentation of meeting the ten (10%) basis expenditure test.
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FINAL APPROVED AS OF 8/12/20Tenant Selection Plans
Owners must submit Tenant Selection Plans within ninety (90) days following notification of the LIHTC
award.
B. Placed in Service Process and Procedure
Placed in Service Requirements
LHC must receive the Financing Certification, Syndication Cost Certification, GAAP Audit and Baseline
Operating Budget by not later than the April 1st of the calendar year following the year in which the
Project is placed in service.
The Taxpayer/Owner may request only a one (1) year extension for submission of the certificates and
audits from the Corporation and only if the Taxpayer has elected to begin the first year of the credit
period following the year in which the Project is placed in service.
The Form 8609 will not be issued if the Taxpayer or a Partner/Member is non‐compliant with any
provision of federal, state, or local law or regulation (including the QAP).
Fees to CHDO or Non‐profit General Partner
Prior to delivery of Form 8609, a non‐profit general partner must certify payment of the fee is consistent
with Development Services Agreement submitted with the LIHTC Application. Developer Fees to CHDOs
or non‐profit general partners in connection with projects receiving an allocation must not be less than
twenty percent (20%) of the total Developer Fees. Fees paid to CHDOs or non‐profits, up to 20% of the
developer’s fee, will not be included in the developer’s maximum profit cap.
Compliance Training Requirements
Taxpayer/Owners will be required to evidence to the Corporation at least ninety (90) days prior to a
Project's Placed In Service Date that the proposed on‐site manager or the management company has
completed compliance training and is certified as a LIHTC Specialist within the prior (12) twelve months
in a LHC-approved program.
Extended Use Agreement, Compliance Monitoring and Other Requirements
Upon execution owners must file the Tax Credit Regulatory Agreement (and appropriate tax-exempt
bond regulatory agreement, if applicable) in the mortgage/conveyance records of the Parish where the
Project is located.
Owners must execute and return a separate Compliance Monitoring Agreement when the Project is
placed in service and prior to LHC providing Form 8609. LHC may impose reporting and record keeping
requirements, nondiscrimination regulations, and any other special conditions.
Annual Audits
Taxpayer/ Owners must submit annual audited financial statements to the Corporation, in the format
prescribed in the Corporation’s audit instructions, the year following the placed in service date of a
project. The financial statements must include supplementary information and a schedule of income
and expenses using the HUD Chart of Accounts. All cash distributions and withdrawals from operating
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FINAL APPROVED AS OF 8/12/20reserves and/or reserves for replacement must be explained in footnotes to the audit and all payments
to related Persons and contractors with an identity of interests to the Taxpayer/Owner must be
identified. Annual budgets approved by the Taxpayer and Management Company must be received at
least thirty (30) days in advance of the fiscal year. Annual audits must be received within one hundred
and twenty days (120) after the end of each fiscal year.
All updated models and audits must be submitted to: LIHTCAnnualAudits@lhc.la.gov
Construction Monitoring Criteria
Construction Documents:
Not more than forty‐five (45) days prior to the commencement of construction, the developer must
submit to the Corporation the following:
1. Complete plans and specifications in .PDF format via disc or zip drive and a ½ set of hard copy
drawings for monitoring and review purposes.
2. Construction contract, complete with timeline and schedule of values.
3. Certification by Architect/Engineer/Design Professional of the plans and specifications.
Within thirty (30) days of receipt, the Corporation will notify the developer of any concerns or need for
clarity. Notwithstanding the Corporation review, the applicant remains responsible and accountable for
compliance.
Building Permits:
Owners must submit copies of all building permits to the Corporation when available. Should building
permits not be available at the start of construction, the applicant may submit a “will issue” letter from
the Authority Having Jurisdiction (AHJ), stating that building permits will be issued once certain
requirements are met.
Construction Monitoring and Compliance:
The Corporation will conduct periodic on-site inspections during the course of construction.
The Developer shall submit the following to the Corporation:
1. Notice to proceed.
2. Monthly application for payment certified by the Design Professional and/or project manager
and the Developer.
3. A copy of all change orders submitted with monthly applications for payment.
Construction Completion:
At construction completion, the applicant shall submit the following:
1. Certificate of Substantial Completion.
2. Certificate of Occupancy(s) if applicable.
3. Prior to issuance of IRS form(s) 8609, the Corporation will perform its final inspection.
Using Regional Material, Labor, and Services: The Taxpayer/Owner will submit plans to the LHC that
detail these maximization efforts.
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